What is AB 1833 and what would it change for California auto insurance?

AB 1833 is the Consumer Driving Data Protection Act of 2026, authored by Assemblymember Tina McKinnor (D-Inglewood). If enacted, it would allow California drivers to voluntarily enroll in telematics programs that track driving behavior, using that data to establish a safer driving record and potentially qualify for lower auto insurance premiums. Currently, Proposition 103 does not authorize telematics as an approved rating factor in California.

How does telematics reduce auto insurance costs?

Telematics programs collect data on driving behavior, including speed, braking, time of day, and mileage. Drivers who demonstrate safer habits, such as avoiding late-night driving and maintaining smooth braking, accumulate data that can qualify them for discounts. The Insurance Research Council found that most telematics participants report a reduction in their auto insurance costs after completing a program.

Why can't California insurers already offer telematics discounts?

Proposition 103, passed by voters in 1988, requires California Department of Insurance approval for all auto insurance rating factors. The CDI has not historically approved telematics data as an authorized rating tool, leaving California as one of the few states where usage-based insurance programs are effectively unavailable for personal auto coverage.

What happens to my driving data if I enroll in a telematics program?

Under AB 1833, your data would be used exclusively to rate private passenger auto insurance. You could request that the insurer delete your data at any time, subject to court orders, and insurers would be prohibited from selling your driving data to outside parties.

California AB 1833 Proposes Telematics Discounts for Auto Drivers in 2026

California is considering a landmark shift in how auto insurance rates are calculated. Assembly Bill 1833, the Consumer Driving Data Protection Act of 2026, would open the door to voluntary telematics programs for California drivers for the first time, giving safe drivers a path to lower premiums based on how they actually drive.

Authored by Assemblymember Tina McKinnor (D-Inglewood), the bill cleared committee debate before being pulled from a scheduled April 13 hearing amid escalating privacy objections. It now moves toward the Senate as a gut-and-amend vehicle later this session. If signed into law, AB 1833 would mark the first significant amendment to Proposition 103's auto insurance rating framework in decades.

What AB 1833 Would Allow

Under the current framework established by Proposition 103 in 1988, California insurers must receive California Department of Insurance approval for any rating factor used to price auto coverage. The state has historically barred telematics data from that approved list, leaving California drivers unable to access the usage-based insurance (UBI) programs common in 48 other states.

AB 1833 would change that by authorizing drivers to voluntarily opt into programs that track driving behavior via smartphone apps or vehicle-connected devices. Participating drivers could use accumulated telematics data to help establish their driving record, potentially qualifying for lower premiums. The bill prohibits insurers from conditioning basic policy eligibility on telematics enrollment. Discounts tied to program participation would require separate CDI approval.

Key privacy protections in the bill include a requirement that insurers delete telematics data upon a policyholder's request, unless a court order prevents it. Insurers would also be barred from selling consumer driving data to third parties. Data collection would be limited strictly to rating private passenger automobile insurance.

What the Research Shows

A 2022 study by the Insurance Research Council found that 8 in 10 drivers who participated in insurer-sponsored telematics programs reported changing how they drive. Among participants, 45 percent said they made significant safety-related changes, and most reported a decrease in their auto insurance costs as a result of program participation.

According to the Insurance Information Institute, data collected in a typical telematics program can include driving speed, braking patterns, mileage, time of day behind the wheel, and road conditions. When analyzed consistently, that data can identify lower-risk drivers who have been paying rates set for a broader population.

For California, which consistently ranks among the top states for uninsured motorists and where auto premiums climbed sharply between 2022 and 2024, telematics represents a potential mechanism for safe drivers to exit the rate averaging that groups them with higher-risk peers.

Privacy Concerns and Legislative Status

Consumer Watchdog, a California advocacy group that has historically intervened in CDI rate proceedings, opposes the measure. Carmen Balber, the organization's executive director, argues that telematics programs risk privacy violations and could introduce racial discrimination into pricing, noting that driving patterns in lower-income communities often differ from those in wealthier areas. The organization flagged these concerns before the April hearing, contributing to the bill's schedule pullback.

Supporters counter that voluntary enrollment addresses the compulsion concern. Allison Adey, representing the insurance industry, stated that it is reasonable for drivers to be able to control what information appears on their driving record. Safe streets advocate Damian Kevitt described telematics as a sensible tool for incentivizing safer driving through real-time feedback.

The gut-and-amend path in the Senate means AB 1833's final text could change substantially before a floor vote. California drivers and insurers should follow developments through the end of the 2025-2026 legislative session.